Crypto futures exchange CoinFLEX has filed for restructuring in Seychelles
CoinFLEX, a renowned crypto futures exchange, has filed for restructuring in a Seychelles court.
This comes two months after the exchange temporarily halted withdrawals before allowing a limited withdrawal mid-last month.
The recent move with filing for restructuring is part of the exchange’s efforts to address a shortfall caused by a counterparty that failed to make a margin call.
The exchange has however said that it intends to get approval from depositors and the court on a proposal to give recovery value USD (rvUSD) tokens, equity, and locked FLEX coins to depositors.
Portraying optimism, the Chief Executive Officer of CoinFlex, Mark Lamb, said:
“We look forward to welcoming a new group of shareholders to CoinFLEX and are glad to be in a jurisdiction where we can quickly resolve this situation and return maximum value to depositors.”
Previous events
On June 23, CoinFLEX suspended withdrawals citing the harsh crypto market conditions and uncertainty involving a counterparty. The exchange then went ahead to suspend the trading of its native token, FLEX Coin (FLEX), Spot trading, and perpetual contract trading.
On July 22, the exchange proposed a plan to compensate depositors amid its efforts to recover the over $84 million debt owed by a “large individual customer.”
Mid-July, CoinFLEX partly reopened withdrawals allowing customers to withdraw 10% of their assets for a week. It also went ahead to cut down its workforce in order to lower the cost of running its business.
The crypto exchange has also outlined its focus on recovery plans that would enable it to regain insolvency. The firm said it was open to new acquisitions, and equity investors.
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